UTG - UTF And UTG: Solid Long-Term Infrastructure CEFs

2024-07-21 11:33:33 ET

Summary

• The utility sector was under pressure due to the higher rate environment but is an area that looks particularly attractive moving forward.
• Cohen & Steers Infrastructure Fund and Reaves Utility Income Trust invest not only in the utility sector, but general infrastructure-related investments more broadly.
• Both funds deliver attractive monthly distributions to investors of over 8% since they've been depressed with the higher rate environment.
• The distributions don't appear to be too elevated at this time, and with a potentially brighter outlook that should bode well for sustainability going forward too.

Written by Nick Ackerman, co-produced by Stanford Chemist

The utility sector had been under pressure due to a higher rate environment. That was on both ends, with the Fed increasing short-term target rates and risk-free rates increasing as well. With things stabilizing and the expectation that rate cuts are next rather than further increases, this is a space that continues to look quite attractive moving forward....

For further details see: